Is the UK property market finally starting to show signs of recovery?

Well according to mortgage lenders the answer is yes.

Lenders are stating that in March we saw a sharp increase on the number of property purchases. The Council of Mortgage Lenders the CML have reported that 31,000 mortgages were granted by lenders which is up by a healthy 29 on March 2008.

This increase echoes figures showing that more applications for home loans are now being approved by lenders. This however comes with a warning that home loans will still be difficult to secure for those without a substantial deposit. Bob Pannell head of research for the CML said "Because the flow of lending is still constrained, there is a sharp dividing line in the housing and mortgage markets between those who can raise a substantial deposit and those who can't,".

Although high loan to value loans are still hard to come by these figures fall in line with a reported up turn by the Bank of England who confirmed that the number of loans approved in February and March was significantly up on the past six months. The Royal Institute of Chartered Surveyors have said they are witnessing "tentative signs" of a recovery and that members were "universally optimistic" about sales. This follows an increase in the number of buyer enquiries for the sixth consecutive month.

Sceptics will be quick to remind us that the spring months normally see a marked increase and that numbers are still low compared to that of a year ago however any good news in the housing market will be welcomed by most.